The port of Cape Town is currently facing significant congestion issues, leading to a Maersk vessel omitting the city from its shipping itinerary. This challenge highlights the ongoing struggles within South Africa’s logistics infrastructure, prompting the government to push for private sector investment.
South Africa has launched an online request for information (RFI) aimed at attracting private investment to address its ailing rail and port systems. The RFI was initiated on March 23, 2025, as Transport Minister Barbara Creecy spoke to the necessity of revitalizing the country's freight infrastructure, citing numerous challenges ranging from operational inefficiencies to rampant vandalism and under-investment.
"As you are all aware, South Africa’s rail and port infrastructure faces substantial challenges, including declining performance, theft, and vandalism, under-investment, and operational inefficiencies. All of these hinder trade and economic growth," said Minister Creecy. With increasing demands on the country's logistics capabilities and limited state funding, the government is now seeking assistance from the private sector to improve services.
Transnet, the state-owned logistics group responsible for freight rail and port services, has struggled with equipment shortages and maintenance backlogs after years of under-investment. The issues have been exacerbated by substantial theft of infrastructure, further crippling the network's functionality.
In her speech, Creecy acknowledged that the limited availability of state resources to fund infrastructure development has significantly restricted the ability of state-owned enterprises to fulfill their mandates. "The limited availability of state resources to fund infrastructure development and address backlogs has intensified these challenges, severely restricting the ability of state-owned entities to fulfil their critical mandates," she reiterated.
The request for information will focus on several vital freight corridors, including the Northern-Cape to Saldanha Bulk Minerals Corridor, which primarily facilitates iron ore and manganese exports, and the Northern-Cape to Nelson Mandela Bay Corridor. Moreover, the RFI will look at the Limpopo and Mpumalanga to Richards Bay Bulk Minerals Corridor project for coal and chrome exports, and will include provisions for magnetite exports.
"Together with Transnet, Government has received numerous unsolicited proposals from the private sector offering investment, skills, and expertise to support the rehabilitation and reform of our struggling rail and port systems," Creecy mentioned, providing hope for the potential overhaul of the country’s transport infrastructure.
The strategy behind the RFI is to create an enabling environment for private sector investment, allowing for a development model that not only addresses inefficiencies but also enhances the overall economic landscape of the nation. Following the information gathering process through the RFI, the government and Transnet plan to issue requests for proposals in August 2025 aimed at systematically revitalizing the fractured logistics network.
While the congestion at Cape Town’s port showcases current systemic challenges, it also serves as a call to action for the country’s leaders and industry stakeholders. The hope is that increased participation from the private sector, coupled with focused governmental support, will lead to significant improvements in both service delivery and operational performance.
The future of South Africa's freight rail and port services hangs in a delicate balance, resting on the ability of the government to harness private investment effectively and implement proactive strategies to foster growth. Stakeholders across the industry are keenly awaiting the outcomes of the RFI and subsequent proposals, which could usher in a new era of efficiency for South Africa's transport infrastructure.
